APAC investor optimism set to boost institutional investments in Indian real estate in 2025
APAC) investors, with 68% expecting regional economic growth to positively impact real estate markets, mentioned Colliers’ Asia Pacific Report: 2025 Global Investor Outlook.
As APAC investors prepare for a lower interest rate environment and narrowing pricing gaps, institutional investments in India’s real estate sector are expected to gain further momentum in 2025. The report highlights significant cross-border investment opportunities, particularly in the office and logistics sectors, with 67% of APAC investors planning to allocate capital to the region in 2025, it said.
The report stated that the region is anticipated to commit over 30% of their total assets under management (AUM) to real estate over the forthcoming five years.In terms of sector focus for 2025, 61% of investors are directing their capital towards industrial and logistics, office, and multi-family/build-to-rent properties.Among those prioritizing office investments, 61% are specifically targeting core and core-plus assets within Central Business Districts (CBD). Furthermore, nearly 90% of respondents project that ESG-compliant office properties will achieve a valuation premium in the next three years.
“The office sector is likely to have its best year in India, with record absorption fueled by GCCs and domestic demand. The residential sector is witnessing strong end-user sales. Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital." said Piyush Gupta, Managing Director, Capital Markets &
